$8 Billion Refinance Program Helps Only 301 Homeowners

The $8 billion Federal Housing Administration Short Refi program, launched in September 2010 to refinance underwater mortgages, helped 301 borrowers in 11 months, according to Department of Housing and Urban Development data analyzed by HousingWire.

The program was initially expected to reach between 500,000 and 1.5 million borrowers. As of Aug. 31, 27 lenders are participating in the program. Fannie Mae and Freddie Mac are not, leaving out roughly two-thirds of the potentially eligible loans, and HUD has been unsuccessful in urging servicers to provide the relief to the other one-third.

The 301 borrowers helped so far is up from 246 in April, HousingWire reported. A HUD spokesman said in July that roughly $50 million has been spent through the program.